Multiple Choice
Tookey Plc sold inventory items (with a cost of £75 000) to its subsidiary Milky Plc for £135 000.A third of the inventory items were sold by Milky Plc to external parties before the financial year end.Ignoring taxes,which of the following statements is correct with respect to this transaction only?
A) Consolidated sales will decrease by £75 000.
B) Consolidated sales will decrease by £95 000.
C) Consolidated profit will decrease by £60 000.
D) Consolidated profit will decrease by £40 000.
Correct Answer:
Verified
Correct Answer:
Verified
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